Vodafone windfall: how much will I get, what do I do?
Vodafone’s ‘return to value strategy’ is the latest development for investors who originally bought into the Telecom Éireann flotation in 1999
On the other hand, as Shirley notes, holding shares in the US telco Verizon, as well as the UK Vodafone, will enhance the diversification of your portfolio, as well as giving you exposure to the dollar.
If you wish to sell your Verizon shares and are eligible for the free dealing facility (ie you will hold fewer than 50,000 Vodafone shares in certificated form at 6pm on February 20th, which is the distribution record time), simply complete the “dealing form” and send it back to Computershare in the envelope provided at the Bristol address indicated by April 4th.
Most Irish shareholders should be able to sell their holdings in this manner, without incurring any dealing costs or commissions via this method.
You can’t sell some of your Verizon shareholding by this method, you must sell all, and the trade will be transacted in tranches depending on when you submit your trading form.
For example, if you submit your form indicating that you wish to sell your shareholding by February 20th, it will be sold on February 24th, with cash distribution and sale confirmations dispatched by March 4th.
This means that the date of sale will be out of your hands. If you want to exert more control and try and get the best price for Verizon, you might wish to transact the sale through your broker in the normal manner but you face charges.
You can also sell your shares in Verizon with Computershare after the free dealing period, although you will incur a charge of 1 per cent of the transaction, or a minimum of £20 (€24).
if I do nothing?
If your documentation is heading for the recycling bin and you intend doing nothing, you will simply receive the “income option”.
You will receive your cash entitlement directly, incurring income tax on it, and you will also become a shareholder in Verizon.
Remember, however, that as an Irish shareholder it may be a more attractive option to choose the capital tax treatment outlined above.
Worth remembering: Share dates
The deadline for the return of the two voting forms.
The court meeting and shareholder general meeting to be held in London’s Hilton Metropole Hotel.
Vodafone will disclose the amount of Verizon shares to which you will be entitled, followed by the cash amount at the completion date on February 21st.
The deadline for return of the form of elec- tion, which allows eligible shareholders to elect to receive the return as capital or income, in different currencies and whether to receive new share certificates. (If shareholders do not return this form, they will automatically receive income tax treatment.)
The completion date.
The first day of trading of new ordinary shares following completion of the transaction and share consolidation. The settlement of Verizon shares.
Cash payments and statements and/or certificates will be issued.
The deadline for return of the dealing form if you are eligible to use the free dealing facility to sell Verizon shares.
Still confused? Vodafone helpline
You can contact the Vodafone helpline on 01-696 8421 between 8.30am and 5.30pm, Monday to Friday.